Capital Markets

Mnuchin expected to be Trump’s Treasury secretary

Donald Trump has chosen Steven Mnuchin as his Treasury secretary, US media outlets reported on Tuesday, positioning the former Goldman Sachs banker to be the latest Wall Street veteran to receive a top administration post. Mr Mnuchin chairs both Dune Capital Management and Dune Entertainment Partners and has been a longtime business associate of Mr […]

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Financial system more vulnerable after Trump victory, says BoE

The US election outcome has “reinforced existing vulnerabilities” in the financial system, the Bank of England has warned, adding that the outlook for financial stability in the UK remains challenging. The BoE said on Wednesday that vulnerabilities that were already considered “elevated” have worsened since its last report on financial stability in July, in the […]

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Zoopla wins back customers from online property rival

Zoopla chief executive Alex Chesterman has branded rival OnTheMarket “a failed experiment”, and said that his property site was winning back customers at a record rate. OnTheMarket was set up last year, aiming to compete with Zoopla and Rightmove, the UK’s two biggest property portals. It allowed estate agents to list their properties more cheaply […]

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Hard-hit online lender CAN Capital makes executive changes

The biggest online lender to small businesses in the US has pulled down the shutters and put its top managers on a leave of absence, in the latest blow to an industry grappling with mounting fears over credit quality. Atlanta-based CAN Capital said on Tuesday that it had replaced a trio of senior executives, after […]

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BoE stress tests: all you need to know

The Bank of England has released the results of its latest round of its annual banking stress tests and its semi-annual financial stability report this morning. Used to measure the resilience of a bank’s balance sheet in adverse scenarios, the stress tests measured the impact of a severe slowdown in Chinese growth, a global recession […]

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Categorized | Equities

Financials feel the force of EM sell-off

Posted on August 27, 2013

Financial stocks in Europe most exposed to emerging market assets found themselves nursing heavy losses as the EM sell-off gathered pace.

The region’s EM and periphery equity markets were particularly hard hit – Turkey’s BIST 100 index fell 4.7 per cent, while Spain’s Ibex and Italy’s MIB both made losses in excess of 2 per cent.

    Austria-listed financial duo Raiffeisen International and Erste Bank were among the biggest fallers, down 5 per cent to €25.60 and 5.5 per cent to €24.10, respectively.

    Both banks have operations in eastern European markets.

    Germany’s Commerzbank
    also stood at the bottom of the FTSE Eurofirst 300 index, down 5.5 per cent to €8.45, while Dutch bank ING
    fell 5.2 per cent to €8.22 and France’s Société Générale
    shed 4.7 per cent to €32.81. Italy’s Intesa Sanpaolo
    fell 4.4 per cent to €1.45.

    Shares in Italy’s UBI Banca
    had been higher in early trade after forecast-beating second-quarter earnings. However, market momentum left the stock 3.4 per cent lower at €3.33 by the close.

    The FTSE Eurofirst 300 ended the session 1.7 per cent lower at 1,202.36.

    “The uncertainty is being created by the potential for some form of military action in Syria, political uncertainty in Italy and the timing of a Fed tapering programme,” said Michael Hewson at CMC Markets.

    Carmakers were the weakest industry group on the pan-European index.

    Germany’s Daimler
    fell 4.8 per cent to €52.89, despite winning a domestic court appeal to overturn the suspension of sales of Mercedes-Benz models that use a coolant EU regulators want to ban.

    France’s Renault
    fell 4.7 per cent to €56.45 and Italy’s Fiat lost 3.7 per cent to €5.78.

    Few stocks were on the positive side of the Eurofirst index, most of them London-listed after UK investors returnedafter Monday’s public holiday.

    , the Austrian oil company, climbed 1.5 per cent to €35.47 after SocGen raised its target price on the stock €38 from €35.